Coverage Recommendations on a PA Auto Insurance Policy

Most of the people I speak to day in and day out do not know their coverage limits on their auto policy.  Worse yet, they don’t know the difference in price if they were to increase their limits of liability or decrease their deductibles.  This post provides a general idea as to where to start in terms of getting a quote for a new policy.

I recommend higher liability limits.  Especially if you own a home.  If you own a home I recommend the highest liability limits PLUS an umbrella policy (excess liability policy).

Below are the Coverages available and/or required for an auto policy in PA followed by the least amount of coverage that I recommend.

  1. Bodily Injury Coverage limits ($100,000/300,000)
  2. Property Damage Coverage limits ($100,000)
  3. Uninsured/Underinsured Motorist Coverage ($100,000/300,000)
  4. Tort Option (some states do not require this, PA does) (Personal Decision although the majority of people have Limited Tort)
  5. Personal Injury Protection (PIP)–Medical (10K), Funeral Benefit($1,500/15,000), Death ($25,000) Loss of Wages $2,500)
  6. Physical Damage Coverage–Comp ($100), Collision ($500), Rental ($40/1200), Towing ($75)
Do you have enough coverage on your policy to cover this accident?

Do you have enough coverage on your policy to cover this accident?

Regarding Physical Damage coverage.  If you have 1 or 2 more cars than drivers than I don’t think you need Rental Coverage.  Also, if you have AAA, then you probably don’t need Towing.  There is no sense in having a higher comp deductible as the price difference doesn’t make it worth it.  Same thing with Collision Coverage.  Of course if you are a mechanic than perhaps the higher deductibles would make sense.

Your Medical coverage will pay first in the event that you are injured as a result of an auto accident.  It doesn’t matter if you are driving, a passenger…a pedestrian that is struck by a vehicle.  If you are injured due to an automobile in any way, shape or form than your Auto insurance Medical coverage will pay FIRST.

In PA, you must decide whether or not you want Limited or Full Tort.  Full Tort is about 20-25% more expensive.  It enables you to sue for everything under the sun if you are involved in a Not-At-Fault accident.  It does not mean you will be rewarded, it just allows you to sue for more than you could if you had Limited Tort.

It is best to discuss your coverage amounts with your agent to make sure you are selecting the appropriate amounts.  My thoughts are you should start with the above recommendations and go from there depending on your situation.

Have you reviewed your coverages lately?

Keith Laskey

RBA/The Laskey Group

610-948-4830

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